Norway’s NOK 8.5tn sovereign wealth fund, Government Pension Fund Global (SPU), is set to expand its investments in unlisted renewable energy projects, issuing a mandate to invest billions of dollars in wind and solar power projects.
This mandate follows an announcement in May 2018 that a proposal would be presented by the Norwegian Government for parliament to debate on expanding its investments in unlisted renewable energy projects. With unlisted projects making up more than two-thirds of the entire renewable infrastructure market, this pledge is another step in the road for governments worldwide making changes to their ESG policies.
The emergence of ESG-conscious investing has led to a greater focus on renewable energy investments in the past few years. Preqin data shows that 2017 was a record year for the number of renewable energy deals with 1,620 transactions completed, and 2018 recorded an annual peak of $101bn in aggregate deal value. It is clear that for governments and other ruling bodies, passing mandates to limit the amount of harmful emissions is no longer enough – investors of all kinds are now diversifying their investments and seeking future profits in the clean energy needed to combat climate change.
In 2018, four of the five largest renewable energy deals were located in Europe, and with large institutions such as SPU looking to expand their exposure to renewable energy projects, these figures will only increase and further diversify the market.
Preqin Pro contains data on more than 15,000 institutional investors globally that invest in alternative assets, with specific information on current and target allocations, investment preferences, future investment plans and much more. Arrange a demo today to find out how Preqin Pro can help you.
Sign up to our newsletter to keep up to date with our latest research and reports.